IRB shifts to digital: Mandatory electronic e-107D form submission for tax reporting starts January 1

PUTRAJAYA, Dec 31 — The Inland Revenue Board (IRB) has announced that, starting tomorrow, the electronic submission of the Section 107D Payment Form (e-107D) will be among the changes to its services.

In a statement today, the IRB said that the submission of payment information to agents, dealers, or distributors (resident individuals) under Section 107D of the Income Tax Act 1967 was previously conducted manually.

“In view of this mandatory implementation, taxpayers are required to submit Form CP 107D online using the e-107D method provided,” it said.

According to the IRB, Section 107D tax deduction payments must be made electronically using a bill number. Payments can be completed either through the ByrHASiL platform at https://byrhasil.hasil.gov.my/HITS_EP/ or via the Financial Process Exchange (FPX) through the ByrHASiL link.

In addition, some tax payments at the Kuala Lumpur Revenue Management Centre (PPTHKL) have been halted, including the Real Property Gains Tax (CKHT) — the three per cent retention sum by real estate acquirers under Section 21B of the Real Property Gains Tax Act 1976 (Form CKHT502).

The types of payments that have been discontinued are withholding tax, tax on income of entertainers, and two per cent tax deduction on commissions paid by companies to agents, dealers or distributors under Section 107D of the Income Tax Act 1967.

However, the IRB said that payments for compound and income tax using debit and credit cards issued in Malaysia were still accepted.

It said that for tax categories that were no longer accepted manually, payments could still be made through the following platforms, using the Bill Number or Tax Identification Number (TIN) as references.

These platforms include online payments via the official HASiL Portal (ByrHASiL), internet banking portals of IRB agent banks, and cash payments at Pos Malaysia counters, cash deposit machines, Automated Teller Machines (ATMs), and certain IRB agent banks.

Payments can also be made via telegraphic transfer, electronic fund transfer (EFT) and interbank Giro transfer (IBG) using the eTT system for taxpayers with bank accounts both in Malaysia and abroad.

The IRB expressed confidence that the mandatory implementation and enhancement of the online service would simplify taxation matters for taxpayers and set a new norm for Malaysians in moving towards full digitisation in the future. — Bernama